Lao's Gold Jewelry Net Profit Grew More Than Twofold Year-over-Year, Stock Price Declined Nearly Half from Peak

Ask AI · Why did Lao Pu Gold’s performance surge but its stock price plummet by half?

On March 23, due to a sharp decline in international gold prices, the Hong Kong-listed “New Consumption” star stock Lao Pu Gold (06180.HK) also experienced a significant drop in price. By the close of trading, the stock was at HKD 558.5 per share, down 8.59%.

On that day, spot gold briefly fell below $4,350 per ounce, dropping over 3% intraday, marking nine consecutive days of decline and erasing all gains since 2026. As of the time of this report, spot gold was at $4,417.16 per ounce, down 1.89%. Following this news, the gold sectors in both A-shares and Hong Kong stocks declined sharply.

Qianhai Open Source Fund’s chief economist told Jiemian News that the recent sharp drop in international gold prices is mainly due to two reasons: first, the significant rise in international gold prices over the past few years has accumulated a large amount of profit-taking; second, expectations of Federal Reserve rate cuts have changed and been delayed, leading to adjustments in market expectations for gold prices, which caused the gold price to plummet.

That evening, Lao Pu Gold released its 2025 performance report. The financial report showed that during the period, Lao Pu Gold’s revenue was 27.303 billion yuan, a year-on-year increase of 221.0%; net profit attributable to the parent company was 4.868 billion yuan, up 230.5%; gross profit increased by 193.4% to approximately 10.274 billion yuan.

Specifically, offline stores are Lao Pu Gold’s core sales channel, accounting for over 82% of total revenue. Over the past year, Lao Pu Gold’s offline stores have continued to penetrate top commercial centers in first- and new first-tier cities. In 2025, the company added 10 new stores and optimized and expanded 9 existing ones.

Meanwhile, online platform revenue accounted for 17.1%. As of December 31, 2025, Lao Pu Gold had 610,000 members, a year-on-year increase of 74.3%.

Lao Pu Gold stated that due to the impact of two price adjustments in 2025, during which gold prices continued to rise rapidly, the company’s gross profit margin slightly declined to about 37.6%. However, after the third price adjustment in October 2025, the gross profit margin rebounded to above 40%.

Jiemian News learned that Lao Pu Gold implemented three price adjustments in 2025. The first occurred after the Spring Festival, with a increase of 5% to 12%. Additionally, the company raised prices again in August and October last year.

On February 28, Lao Pu Gold officially launched its first price adjustment for 2026. According to The Paper, the adjustment was between 20% and 30%. For example, a necklace weighing about 20.8 grams, priced at around 47,300 yuan before the adjustment, was increased to 60,100 yuan afterward, a 27.6% rise.

Furthermore, Lao Pu Gold expects to achieve sales of approximately 19 billion to 20 billion yuan in the first quarter of 2026, with revenue around 16.5 billion to 17.5 billion yuan, and net profit of about 3.6 billion to 3.8 billion yuan.

Since its listing on June 28, 2024, Lao Pu Gold’s stock price reached a high of HKD 1,108 in July last year, but then retreated. As of the close on March 23, the company’s total market value was about HKD 98.7 billion, roughly 47% below its all-time high set in July 2025.